Despite the storms Bitcoin (BTC) miners have experienced throughout 2022, Blockstream remains confident in the ecosystem. Adam Back’s company has just raised 125 million dollars to develop its mining operations.
Blockstream bets on cryptocurrency mining
According to Blockstream’s announcement, this fundraiser will specifically to develop its services ofmining roommate» for institutional actors. It follows a previous fundraiser last August, which made it possible to develop cryptocurrency mining infrastructure. The acquisition of Spondoolies had notably enabled the company to produce its own ASIC miners.
Blockstream offers its customers to “rent” its ASIC miners for a given time, in order to produce Bitcoin (BTC). According to the company, there is a high demand for this type of service:
“Blockstream will use this fundraiser […] to extend its mining infrastructures in order to meet the strong demand from institutions for these hosting services.»
👉 Do not miss our guide – Introduction to cryptocurrency mining
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Blockstream survives a difficult year
Companies related to Bitcoin mining were particularly affected by the successive crises of 2022. We thus remember that Core Scientific – one of Blockstream’s biggest competitors – officially went out of business a few weeks ago. And the giant Argo Blockchain came close to bankruptcy, and was saved by Galaxy Digital.
No wonder: in 2022, miners were suffocated by the fall in the price of BTC, which mechanically lowered the hashrate. Result: dedicated mining machines have seen their prices fall by 80% since their 2021 highs. But all of this doesn’t appear to have fundamentally impacted Blockstream, as the statement states:
“With 500 megawatts in development, Blockstream is one of the largest Bitcoin mining operators. Blockstream will also expand its mining products based on renewable energy, and continue to develop its own Bitcoin miner.»
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According to Adam Back, the CEO of Blockstream who is part of the cypherpunk movement, this year has shown the ecosystem the need to get rid of third parties :
“2022 was punctuated with failures from multiple centralized players and protocols, which led to learning in the markets: the fundamental value of blockchains lies in reducing the need to rely on third parties.»
👉 Related Related – Celsius Sells Over $1.3 Million in Bitcoin (BTC) Mining Hardware
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Source: Blockstream, press release
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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